Related Links

Editorial - Rules for ‘Ride-sharing' services should protect public and passengers

Published: Sunday, July 20, 2014 at 11:14 p.m.

Last Modified: Sunday, July 20, 2014 at 11:14 p.m.

Services such as Uber may be the future business model of for-hire transportation, but before they become too entrenched, state and local governments need to figure out how to better regulate them.

Uber recently entered Wilmington in direct competition with taxicab companies that are licensed and regulated by the city. Naturally, many taxicab services are worried. Some of that concern is about a new competitor entering the market, but cab companies have a point that the playing field is far from equal.

In yet another case of lobbyists writing laws to directly benefit their clients, Uber's lobbying team convinced the General Assembly last year to make it illegal for cities to regulate digital transportation services such as Uber and competitor Lyft.

And once again, Republican lawmakers, who rode into office on a platform that included putting more control in the hands of local residents, instead centralized what should be a local decision.

Cities have been licensing and charging fees for taxicabs for decades, a system that some free-market advocates see as stifling competition. Yet communities need some way to oversee commercial transportation services. After all, these drivers are taking responsibility for a paying customer's safety.

Uber advertises itself as a "ride sharing" service, but that is a misnomer. Ride sharing is when one person says, "Hey, I'm going to Chapel Hill, too. Let's ride together and split the cost." What Uber offers in Wilmington is a for-hire car service, known as UberX, in which the driver uses his or her personal car and gets to keep a greater share of the fare.

Instead of a dispatcher, fares are assigned via a digital application. UberX Drivers aren't employees of Uber, but independent contractors. The company has a liability policy, and drivers must carry commercial insurance, but already questions are being raised about whether this is a sufficient arrangement. A lawsuit was filed in San Francisco after an Uber driver struck and killed a 6-year-old girl while logged into the Uber app.

The company says it has no liability because the driver was between fares.

And while Uber says its drivers pass a background check and must keep their cars in order, taxicab companies must follow city and state guidelines for inspections. The Wilmington International Airport has even stricter requirements, as well as fees for the right to pick up passengers.

There should be a more uniform policy governing transportation services for hire, one that allows for regulation and fees that require these services to contribute toward the services that protect not only residents, but commercial businesses.

It is not far-fetched to imagine a day when all car services, regardless of what they are called, are dispatched like the drivers for Uber and Lyft. But what must never change is the emphasis on keeping passengers and the general public safe, and having basic regulations governing services that ferry passengers for profit.

<p>Services such as Uber may be the future business model of for-hire transportation, but before they become too entrenched, state and local governments need to figure out how to better regulate them.</p><p>Uber recently entered Wilmington in direct competition with taxicab companies that are licensed and regulated by the city. Naturally, many taxicab services are worried. Some of that concern is about a new competitor entering the market, but cab companies have a point that the playing field is far from equal.</p><p>In yet another case of lobbyists writing laws to directly benefit their clients, Uber's lobbying team convinced the General Assembly last year to make it illegal for cities to regulate digital transportation services such as Uber and competitor Lyft.</p><p>And once again, Republican lawmakers, who rode into office on a platform that included putting more control in the hands of local residents, instead centralized what should be a local decision.</p><p>Cities have been licensing and charging fees for taxicabs for decades, a system that some free-market advocates see as stifling competition. Yet communities need some way to oversee commercial transportation services. After all, these drivers are taking responsibility for a paying customer's safety.</p><p>Uber advertises itself as a "ride sharing" service, but that is a misnomer. Ride sharing is when one person says, "Hey, I'm going to Chapel Hill, too. Let's ride together and split the cost." What Uber offers in Wilmington is a for-hire car service, known as UberX, in which the driver uses his or her personal car and gets to keep a greater share of the fare.</p><p>Instead of a dispatcher, fares are assigned via a digital application. UberX Drivers aren't employees of Uber, but independent contractors. The company has a liability policy, and drivers must carry commercial insurance, but already questions are being raised about whether this is a sufficient arrangement. A lawsuit was filed in San Francisco after an Uber driver struck and killed a 6-year-old girl while logged into the Uber app.</p><p>The company says it has no liability because the driver was between fares.</p><p>And while Uber says its drivers pass a background check and must keep their cars in order, taxicab companies must follow city and state guidelines for inspections. The <a href="http://www.starnewsonline.com/section/TOPIC9917"><b>Wilmington International Airport</b></a> has even stricter requirements, as well as fees for the right to pick up passengers.</p><p>There should be a more uniform policy governing transportation services for hire, one that allows for regulation and fees that require these services to contribute toward the services that protect not only residents, but commercial businesses.</p><p>It is not far-fetched to imagine a day when all car services, regardless of what they are called, are dispatched like the drivers for Uber and Lyft. But what must never change is the emphasis on keeping passengers and the general public safe, and having basic regulations governing services that ferry passengers for profit.</p>